Having a business relationship with someone else has the potential to lead to plenty of advantages for your company as well as for you personally. But when it is time to dissolve a partnership in Arizona, it is strongly recommended that you have an existing relationship with an Arizona business attorney. There are certain stipulations that may be articulated in your partnership agreement as well as other business documents that will tell you how you need to proceed.
However, having legal insight from a knowledgeable business lawyer is one of the most important things that you can do to protect yourself. The first thing to do if you intend to dissolve your partnership is to review your partnership agreement. While this is not required in Arizona, it is a good idea to have one.
Some of the key points to address in a partnership agreement are how the partnership assets will be divided among the partners and how the partnership debts will be managed as well. Furthermore, you should take a vote on action to dissolve if your partnership agreement outlines this. Usually the majority of partners have to consent before the partnership can dissolve and ideally you will have them all vote. Record the results of the vote in writing. However, if there is a disagreement in the partnership and this is why you intend to dissolve it, you will usually have a few options. You may be eligible to buy out one or more partners who want to leave or you could use an independent mediator to resolve the agreements.
If you are unable to come to an agreement after trying these options, you will have to go back to court and allow a judge to decide how the dissolution will proceed. If there is no partnership agreement, you will have to rely on the uniform partnership act and an Arizona business lawyer can help you understand how this influences you. Typically, partnerships in Arizona are not legally mandated to file a form when they dissolve, however, it is a good idea to file a statement of dissolution with the Secretary of State in Arizona. Consulting with an Arizona business attorney as soon as possible after you have determined that you intend to dissolve partnership is simply good planning.